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Magpul Announces Relocation

Written by Orchid

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January 08, 2014

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In March 2013 Magpul Industries announced that they would move their multi-million dollar business out of the State of Colorado if HB13-1224 and other anti-firearms laws were passed in the Evergreen State. The laws passed and an exemption was offered to allow Magpul to maintain operations in Colorado despite the state’s new restrictions on magazines capable of holding more than 15 rounds of ammunition. Magpul declined the exemption and announced that they would be moving outside of the state by the end of the year. The company made the announcement official last week by declaring that they would be relocating to Texas and Wyoming. According to a press release issued by Magpul: “The Company is relocating manufacturing, distribution and shipping operations to Cheyenne, Wyoming. Magpul is leasing a 58,000 square foot manufacturing and distribution facility during the construction of a 100,000 square foot build-to-suit facility in the Cheyenne Business Parkway. The Wyoming relocation is being completed with support from Governor Matt Mead, the Wyoming Business Council and Cheyenne LEADS.” The company’s headquarters will be relocated to North Central Texas. In the same press release, Magpul indicated that three potential sites are in the running and that “the transition to the Texas headquarters will begin as soon as the facility is selected. The Texas relocation is being accomplished with support from Governor Rick Perry and the Texas Economic Development Corporation.” Other companies in the firearms industry have been making similar moves due to legislation. SureFire Industries of Fountain Valley, California, who is known for making high intensity flashlights, set up a plant in Reno, Nevada, to manufacture 60 and 100 round magazines, which are banned in California. Beretta planned to move its US manufacturing facility from Maryland to Virginia. This made sense as the company had a distribution center in Spotsylvania. The company is now looking into other options due to the election of a notorious anti-gun governor Terry McAuliffe being elected in November. However, moving a firearms manufacturer is never an easy task. As with any business that makes specialized products, the training of employees at a new location is crucial, particularly if the new location lacks a base of skilled workers. Magpul’s manufacturing, shipping and distribution center will be at the Cheyenne location, which is not far from the former Colorado plant. Presumably, a majority of current employees will move the short distance or choose to commute. In the case of other manufacturers who have been in business for over a century, it is not an easy task to pack up and move to a more “gun friendly” location suitable to their existing employees; particularly when neighboring states may have similar legislative hurdles and prejudices toward firearms manufacturing and western and southern states who may want the tax revenue and jobs, may not have the skilled workers available. Orchid Advisors provides electronic newsletter (“Advisory and Alert”) and blogs for general informational purposes only. It should not be considered a formal or informal interpretation of law. It is not intended as professional counsel, should not be considered legal advice and should not be used as such.

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